A chart is the trader0s guide to ultimate profitability. For each trading style, from scalping and Day Trading to swing trading and long-term investing, a chart is worth a thousand words. Professional traders rely on their charts for consistent profits and for guidance on how to act next.
Charts and trading plans coexist
In many ways, a chart is as much of a trading plan as anything else. It maps out the history of the price in many different scenarios. The chart is just as much a historical reference as anything else, allowing the trader to see how the price has changed over time and proving that results are obtainable with a good trading system.
Just take a look at the ups and downs of a stock chart or foreign currency pair, and you0ll see many moves that happen just over a few months that could have made you a millionaire 0 had you been in the market, that is.
Charts show the future through the past
Professional traders make their living deciphering the code of the ever changing chart. By studying the ups and downs and everything in between, traders look for returns based on what history […]
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Whether Day Trading, scalping, or investing, there are fundamental skills that each trader should master. Skill-building activities will help you sharpen your ability to make money and cash in on critical market movements.
1. Don0t Be a Perfectionist
Consistent profits are achieved from winning more than you lose 0 not winning every single trade. There are plenty of professional traders who generate profits by winning just 10% of their trades by maximizing gains and minimizing their losses.
2. Stick to a Trading Plan
Developing a trading plan is extremely important. Day Trading around your own set plan for each position will produce consistent profits. A trading plan planner should be your best friend when developing your own trading style. The key is sticking to what you0ve written down on paper.
3. Know the Odds
You should know the payoff odds for each trade that you take. Scalping produces large gains from small movements with higher risk than swing trading. Your trading plan should include a way to regulate how much capital you0re willing to risk on each position 0 but you should never risk more than 2% of your total account value.
4. Complete Trading Plan
The skill […]
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Moving averages are used by every trader, even those that don0t favor technical analysis. Why is this indicator so prevalent, even among traders who enjoy fundamental investing?
KISS: Keep It Simple, Stupid
One of the biggest reasons that moving averages are so popular is due to their simplicity. While profitable traders have been using a moving average on their charts for quite some time, the moving average remains one of the most simplistic forms of technical analysis. Uptrend, downtrend, or sideways trend, moving averages have been perfected for their use as support and resistance lines and as a general prediction of where the markets are headed.
Day Trading strategies with any trader frequently involve the use of one or many moving averages to guide the price. Professional traders use moving averages to coincide with the thinking of the 0big boys0 on the market. Many investment firms and trading houses employ moving averages to see the previous X days of price movement. Creative techniques are used with moving averages to perfect their predictions. For example, a moving average may be set back on the chart by a few bars to make it even more of a lagging indicator, […]
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